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NVR 2Q profit rises, misses Street; revenue climbs

RESTON, Va. (AP) -- NVR's net income increased 8 percent in the second quarter, benefiting from a rise in new home orders.

The housing market has showed signs of a steady recovery, with consumers looking to take advantage of low interest rates as U.S. economic conditions continue to improve.

NVR is among the businesses starting to see better results thanks to the momentum gaining in the housing market.

For the period ended June 30, the homebuilding and mortgage banking company earned $50.7 million, or $10.11 per share. That's up from $46.8 million, or $8.97 per share, a year earlier.

Analysts surveyed by FactSet predicted higher earnings of $12.13 per share.

Shares of NVR fell $13.65 to $927 in midday trading.

Revenue climbed about 31 percent to $1.01 billion from $769.8 million as new home orders increased 25 percent to 3,278 units. The performance met Wall Street's expectations.

NVR Inc. said Monday that its backlog of homes sold but not settled rose 31 percent to 6,617 units, while the quarterly cancellation rate declined to 13.8 percent from 16.3 percent.

In the mortgage banking segment, mortgage closed loan production rose 18 percent to $646.5 million.

NVR's homebuilding segment sells and builds homes under the Ryan Homes, NVHomes, Fox Ridge Homes and Heartland Homes brands. The Reston, Va., company operates in 14 states and Washington D.C.